Held that the assessee had valued the closing stock at lower than the cost price on account of deterioration of old stock. The Assessing Officer has not accepted such valuation made by the assessee mainly on the ground that since the assessee was valuing the closing stock at cost method that should have been adopted. There was no case of conscious concealment of any income by the assessee nor furnishing any inaccurate particulars of income by the assessee. The books of account had not been rejected, nor a case of creating false evidence made out. The order of penalty was liable to be quashed. (AY.  2010-11)